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Export stimulus for states
New Delhi, Jan. 5: The Centre is preparing a financial support scheme for states to expand their export infrastructure.
“Since almost all states have expressed their wish for a central scheme which supports export infrastructure, we have acted on your suggestion and are trying to formulate such a scheme. I hope we soon succeed in achieving a consensus for the roll-out of the same,” commerce minister Nirmala Sitharaman said here today.
The proposed scheme will be called the Trade Infrastructure for Export Scheme (TIES), Sitharaman said at the second meeting of the Council for Trade Development and Promotion.
The minister said the objective of the council was to develop partnerships with states to boost international trade.
“Since last January, we have managed to contain our trade deficit because of a control on imports. But, there is an immediate need to synergise our efforts and jointly take appropriate steps to boost the country’s exports, which is the only sustainable way in today’s international trade environment,” she said.
The minister said states had been requested to develop their export strategy in line with the national policy.
“So far, 17 states have prepared their export strategy and I request others to kindly expedite their strategies. I would request the states to use these export commissioners as focal points for institutionalised interactions with exporters,” Sitharaman said.
She also sought suggestions to improve the export competitiveness of domestic products. “One such area which requires immediate intervention is that of facilities for testing, certification, trace-back, packaging and labelling,” she said.
According to Sitharaman, there is a need to diversify the services exports basket by enabling more sectors and to breach more markets.
Fieo president S.C. Ralhan suggested that, “Merchandise exporters, who avail exemptions through various forms, may be given the same facility under the goods and services tax. The exemption from integrated GST on the final product procured for exports would help ease the liquidity as cost of credit in India is much above the international benchmark.”